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Trade Policy And Indirect Rent Seeking: A Synthesis Of Recent Work†

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  • Michael P. Leidy

Abstract

This paper synthesizes a body of work in trade theory and commercial policy. A common theme unifies this literature: The prospect of protection, institutionalized in the policy formation process and the rules for administered protection, can induce real changes in economic activity independent of whether actual barriers to trade have been imposed. These changes are designed to indirectly manage policy outcomes by either encouraging or defusing protectionist pressures. Thus firm conduct may be distorted by incentives to optimize on a politically‐determined margin and the evolution of protectionist events may be shaped by more than the direct lobbying efforts of interest groups.

Suggested Citation

  • Michael P. Leidy, 1994. "Trade Policy And Indirect Rent Seeking: A Synthesis Of Recent Work†," Economics and Politics, Wiley Blackwell, vol. 6(2), pages 97-118, July.
    • Handle: RePEc:bla:ecopol:v:6:y:1994:i:2:p:97-118
    DOI: 10.1111/j.1468-0343.1994.tb00090.x
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    References listed on IDEAS

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    2. Peter Egger & Douglas Nelson, 2011. "How Bad Is Antidumping? Evidence from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1374-1390, November.
    3. Joseph E. Stiglitz, 1997. "Dumping on Free Trade: The U.S. Import Trade Laws," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 402-424, October.
    4. Bayindir-Upmann, Thorsten, 1998. "Interjurisdictional competition in emission taxes under imperfect competition of local firms," European Journal of Political Economy, Elsevier, vol. 14(2), pages 345-368, May.
    5. Bruce Blonigen & Thomas Prusa, 2003. "The Cost of Antidumping: the Devil is in the Details," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(4), pages 233-245.
    6. Bommer, Rolf, 1995. "Environmental policy and industrial competitiveness: The pollution haven hypothesis reconsidered," Discussion Papers, Series II 262, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    7. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
    8. Feeney, JoAnne & Hillman, Arye L., 1995. "Asset markets and individual trade policy preferences," Discussion Papers, Series II 282, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".

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